Reform UK has outlined plans for £40 billion in first-year spending cuts as part of an alternative Budget, arguing that reductions in welfare, net-zero subsidies and other programmes could finance tax cuts for households.
The proposals were detailed ahead of a planned presentation by party leader Nigel Farage and Treasury spokesman Robert Jenrick. Speaking to Sky News on Sunday 25 October, Jenrick said he believed the reductions could be delivered in a single Budget. They are opposition proposals, not measures adopted by the Government.
Where Reform says the savings would come from
The party proposes £20 billion in welfare savings, £8 billion from net-zero subsidies, £6 billion from overseas aid, £2 billion from quangos and the civil service, and £3 billion from changes affecting student loans and courses. It also estimates £1 billion in additional revenue from an immigration health surcharge. Together these figures total £40 billion.
Proposed tax and energy measures
Reform says it would raise the income tax personal allowance to £15,000, compared with the existing £12,570 threshold. The party also proposes reducing energy bills through changes to green levies and VAT and retaining the 5p fuel duty reduction. It claims the package could benefit an average household by around £1,300 annually.
The estimated household benefit and spending savings are Reform UK projections; they have not been established as realised savings or independently verified outcomes. The precise effects would depend on the detailed design of the measures, eligibility and implementation.
Jenrick questioned on deliverability
In a Sky News interview, Jenrick maintained that £40 billion could be saved in the first year. He was questioned about how this pledge relates to the party’s previously outlined longer-term spending reductions. The Chartered Institute of Taxation has separately documented Reform’s earlier pledge to increase the personal allowance, along with the party’s estimates of its cost.
The alternative Budget is intended to contrast with Chancellor John Healey’s forthcoming fiscal statement. No change to tax thresholds, welfare entitlement or government spending follows from Reform’s announcement alone.
Sources: Sky News: Jenrick interview (25 October 2026); The Sun: proposed spending breakdown (24 October 2026); Reform UK: party policies; Chartered Institute of Taxation: analysis of Reform tax policy.